# Interaction Models: Demographics × Fiscal/Financial → Spreads

| Model | Dep Var | N | Countries | R² |
|---|---|---|---|---|
| B1: Z×debt → spread | sovereign_spread | 722 | 23 | 0.444 |
| B2: Z×KAOPEN → spread | sovereign_spread | 727 | 23 | 0.351 |
| B3: Z×fiscal → spread | sovereign_spread | 727 | 23 | 0.346 |

## Key Coefficients

| Model | Variable | Coef | SE | p-value | Sig |
|---|---|---|---|---|---|
| B1: Z×debt → spread | Z_1 | -23.2744 | 20.9164 | 0.2662 |  |
| B1: Z×debt → spread | Z_2 | 2.2189 | 2.7091 | 0.4130 |  |
| B1: Z×debt → spread | Z_3 | -0.0632 | 0.0989 | 0.5231 |  |
| B1: Z×debt → spread | Z_1_x_debt | 0.6746 | 0.2699 | 0.0127 | ** |
| B1: Z×debt → spread | Z_2_x_debt | -0.0766 | 0.0337 | 0.0233 | ** |
| B1: Z×debt → spread | Z_3_x_debt | 0.0025 | 0.0012 | 0.0376 | ** |
| B2: Z×KAOPEN → spread | Z_1 | 37.9770 | 42.7366 | 0.3745 |  |
| B2: Z×KAOPEN → spread | Z_2 | -5.5826 | 5.7623 | 0.3330 |  |
| B2: Z×KAOPEN → spread | Z_3 | 0.2200 | 0.2151 | 0.3069 |  |
| B2: Z×KAOPEN → spread | Z_1_x_kaopen | -9.6093 | 19.2194 | 0.6172 |  |
| B2: Z×KAOPEN → spread | Z_2_x_kaopen | 1.4667 | 2.5863 | 0.5708 |  |
| B2: Z×KAOPEN → spread | Z_3_x_kaopen | -0.0613 | 0.0964 | 0.5250 |  |
| B3: Z×fiscal → spread | Z_1 | 14.7027 | 12.7679 | 0.2499 |  |
| B3: Z×fiscal → spread | Z_2 | -2.0552 | 1.6736 | 0.2198 |  |
| B3: Z×fiscal → spread | Z_3 | 0.0743 | 0.0616 | 0.2277 |  |
| B3: Z×fiscal → spread | Z_1_x_fiscal | 0.1709 | 1.4181 | 0.9041 |  |
| B3: Z×fiscal → spread | Z_2_x_fiscal | -0.0216 | 0.1845 | 0.9066 |  |
| B3: Z×fiscal → spread | Z_3_x_fiscal | 0.0007 | 0.0067 | 0.9213 |  |

*Interaction models on sovereign spread (10y - world avg)*